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D03212488S 


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REGULATIONS  AS  TO  THE  PURCHASE  OF  PRO- 
DUCE UNDER  THE  «  ACT  TO  AUTHORIZE  THE 
EXCHANGE  OF  BONDS  FOR  ARTICLES  IN  KIND, 
AND  THE  SHIPMENT,  SALE,  OR  HYPOTHECA- 
TION OF  SUCH  ARTICLES,"  APPROVED  APRIL 
21,  18C2. 


The  several  Produce  Loan  Agents  appointed  in  each 
State  shall  accept  cotton  in  kind,  which  has  been  or  shall 
be  subscribed,  in  exchange  for  the  8  per  cent,  bonds  of  the 
Confederate  States,  under  the  following  regulations  : 

1.  Each  agent  shall,  by  public  advertisement,  call  for 
offers  to  be  made,  setting  forth  the  quantity,  price  and  qual- 
ity of  the  cotton,  and  the  place  at  which  the  same  is  depos- 
ited ;  and  upon  receiving  the  offers,  he  shall  cause  the  cot- 
ton offered  to  be  examined,  and  the  price  ascertained  and 
reported  upon,  by  an  experienced  cotton  broker,  and,  upon 
being  satisfied  that  the  purchase  would  be  desirable,  and 
that  the  place  of  deposit  is  safe,  he  may  conclude  the  pur- 
chases to  the  extent  prescribed  to  him  by  the  Secretary  of 
the  Treasury.  "When  bids  are  equal,  preference  shall  be 
given  to  subscriptions  heretofore  made  to  the  Produce 
Loan. 

2.  No  purchase  shall  be  made  of  cotton  deposited  on  a 
plantation,  unless  the  seller  shall  engage,  in  writing,  to 
take  due  care  of  the  cotton  while  on  his  plantation,  and  to 
deliver  the  same,  at  his  own  expense,  at  the  usual  place  of 
shipment  or  railroad  delivery,  whenever  demanded  by  the 
Secretary  of  the  Treasury,  or  his  agents,  or  his  or  their  as- 
signs ;  nor  shall  any  such  purchase  be  made  of  less  than 


twenty  bales  on  one  plantation.  'Wherever  purchases  of  less 
than  one  hundred  bales  are  made,  the  Government  Agent 
is  authorized  to  have  them  collected  and  deposited  in  a  ware- 
house, or  upon  some  plantation  where  proper  provision  can 

be  made  for  their  secure  custody,  and  for  delivery  at  the 
usual  place  of  shipment  ;  and  lie  shall  report  to  the  Chief 
Agent  the  arrangements  thus  made,  -with  proper  documents 
for  the  delivery. 

3.  Before  completing  the  purchase  the  Government  shall 
see  that  each  bale  of  cotton  is  sufficiently  secured  with  rope 
and  bagging,  and  is  deposited  in  a  warehouse,  or  if  on  a 
plantation,  in  some  enclosed  or  covered  building,  secure 
from  fire,  to  remain  under  charge  of  the  seller  as  ware- 
houseman. The  purchase  shall  then  be  completed  by  the 
delivery  of  Confederate  bonds  or  stock  for  the  price,  in  ex- 
change for  the  documents  transferring  the  property  to  the 
Confederate  States,  and  stipulating  as  specified  in  these  re- 
gulations ;  and  thereupon  the  agent  shall  place  upon  each 
bale  a  Government  mark  to  identify  the  same.  In  all  cases 
he  shall  take  the  transfer  of  title  in  duplicate,  setting  forth 
the  particulars,  one  of  -which  he  shall  forward  to  the  Chief 
Produce  Loan  Agent  of  the  State  wherein  the  cotton  is  de- 
posited, and  the  other  to  the  Treasury  Department  at  the 
Seat  of  Government. 

4.  The  General  Agents  will  keep  books,  in  which  proper 
entries  shall  be  made,  designating  the  location,  quality, 
quantity  and  value  of  each  purchase,  with  such  other  par- 
ticulars as  shall  utentify  the  same  ;  and  shall  register  and 
file  the  receipts  of  the  sellers  ;  they  shall  also  debit  the 
subordinate  agents  with  all  bonds  furnished  them,  and  cre- 
dit them  with  the  value  of  the  cotton  purchased,  together 
with  the  commissions  for  purchasing,  and  at  the  end  of  each 
month  shall  make  to  the  Secretary  of  the  Treasury  a  full 
report  of  all  their  transactions  and  those  of  their  different 
agents. 

5.  The  agents  to  purchase  shall  be,  if  possible,  cotton 
brokers,  or  other  experts.      When   they  are   not  such,  the 


agent  shall  call  in  aid  one  or  more  cotton  brokers  or  other 
experts,  to  settle  the  classification  and  value  of  the  cotton, 
and  the  commissions  allowed  shall  be  such  as  are  customary 
for  such  service,  to  be  certified  for  payment  monthly  by  the 
General  Agent  to  the  Treasury  Department. 

6.  The  Produce  Loan  Bureau  at  the  Seat  of  Government 
shall  register  the  original  receipts  forwarded  to  the  Treasu- 
ry Department,  and  shall  keep  books,  in  which  shall  be  en- 
tered such  particulars  as  are  necessary  to  identify  the 
parcels  of  cotton,  their  location,  sale,  or  final  disposition. 
Accounts  shall  also  be  kept  of  the  certificates  issued,  and 
of  the  disposition  thereof,  and  of  the  proceeds  of  sale,  or 
hypothecation  of  them  ;  and  such  other  accounts  shall  be 
kept  as  may  be  necessary  and  proper  for  carrying  into  com- 
plete effect  the  act  of  Congress. 

?.  The  following  shall  be  the  form  of  the  transfer  of  title 
and  receipt  when  the  cotton  is  deposited  on  a  plantation  : 

State  of  , 

CountyNof 
In  confederation  0f  \       dollars  paid  me 

in  bonds  of\he  Confederate  States,  I,     \  ,  of  the 

mnty  and  Snfc^e  aforesaid,  have  sold  to  >tiie  Confederate 
Sf^es  of  America's.  bales  of  dotton,  marked 

^umbered  as  in  thamargin,  now  depositecNit 

,  and  I  hereby  ji^ree  to  deliver  the  saidN^ptton,  at 
my  ownVxpense,  at  x.  ,  in  tag  State 

of  \  ,  wH^never  required  by  toe  Se- 

cretary of  tHe  Treasury,  or  his  agents,  or  his  or  theirVs- 
signs. 

S.  When  the  cotton  is  deposited  at  a  warehouse,  the  form 
of  transfer  .shall  be  in  the  usual  and  customary  form  in  pri- 
vate transactions. 

9.  Whenever  the  cotton  shall  be  sold  by  the  Government 
Agents  a  certificate  shall  be  appended  to  the  transfer  of  ti- 
tle in  the  following  form  : 


Confederate  Btatjis  ok  America, 

Treasury  Department. 

1st; 

This  will  certify  that  the  above-described  cotton  has  been 
sold  to  .  and  delivery  is  hereby  or- 

dered to  be  made  to  him  or  his  order,  with  license  to  export 
the  same  from  the  Confederate  States  to  any  neutral  port, 
upon  complying  with  the  requisitions  of  the  law. 

Given  under  my  hand  and  seal  on  the  year  and  day  above 
mentioned. 


Secretary  of  Treasury. 

10.  Subscribers  to  the  Produce  Loan  may,  at  any  time, 
pay  the  amount  or  value  of  their  subscriptions  in  Treasury 
notes,  instead  of  delivering  the  same  in  kind,  and  such  pay- 
ment shall  entitle  them  forthwith  to  receive  bonds  or  certi- 
ficates of  stuck  in  exchange. 

C.  G.  MEMMINGER. 


May  !1,  1862. 


Secretary  of  Treasury. 


AN  ACT 

To  authorize  the  Exchange  of  Bonds  for  articles  in  kind, 
and  the  shipment,  sale,  or  hypothecation  of  such  arti- 
cles. 

Section  1 .  The  Congress  of  the  Confederate  States  of  Ame- 
ica  do  enact,  That  the  Secretary  of  the  Treasury  be,  and  he 
is  hereby,  authorized  to  exchange  the  bonds  or  stocks  of  the 
Confederate  States  for  any  articles  in  kind,  which  may  be 
required  for  the  use  of  the  Government,  the  said  articles  to 
be  valued  according  to  such  regulations  as  the  said  Secre- 
tary shall  make. 

Sec  2.  It  shall  be  the  duty  of  the  Commissary  and 
Quartermaster  Generals  to  direct  their  various  officers  to 
receive,  at  the  place  of  purchase,  all  such  articles  pur- 
chased as  are  applicable  to  their  several  departments,  and  to 
apply  the  same  in  the  same  manner  as  if  purchased  directly 
by  themselves  ;  and  the  officer  to  whom  each  article  is  de- 
livered shall  be  charged  with  the  value  as  declared  by  the 
purchase,  and  shall  be  bound  to  account  for  the  same. 

Sec  3.  The  said  Secretary  is  also  authorized  to  accept, 
for  the  use  of  the  Government,  in  exchange  for  the  said 
bonds  or  stock,  cotton,  tobacco,  and  other  agricultural  pro- 
ducts in  kind,  which  have  been  subscribed  to  the  Produce 
Loan,  or  which  may  be  subscribed  in  kind,  at  such  rates  as 
may  be  adjusted  between  the  parties  and  the  agents  of  the 
Government :  Provided,  That  in  no  event  shall  he  receive 
of  cotton  or  tobacco  a  greater  value  than  thirty-five  mil- 
lions of  dollars  ;  and  the  said  Secretary  is  further  author- 
ized to  deposit  the  same  at  such  places  as  he  shall  deem  pro- 
per, and  to  procure  advances  thereon  by  hypothecation,  or 
to  ship  the  same  abroad,  or  to  sell  the  same  at  home  or 
abroad,  as  he  may  deem  best ;  and,  to  assist  these  opera- 


tions,  the  said  Secretary  may  issue  Produce  Certificates, 
which  shall  entitle  the  party  to  whom  issued,  or  his  en- 
dorsee, to  receive  the  produce  therein  set  forth,  and  to  ship 
the  same  to  any  neutral  port,  in  conformity  with  the  laws 
of  the  Confederate  States. 

Sec.  4.  The  Secretary  of  the  Treasury  may,  from  time  to 
time,  appoint  and  dismiss  such  agents  as  he  may  deem  re- 
quisite to  carry  into  effect  the  provisions  of  this  act.  Their 
compensation  shall  be  a  brokerage  upon  the  business  com- 
pleted by  them  at  such  rates  as  the  Secretary  of  the  Trea- 
sury shall  adjust  by  general  regulation. 

Sec  5.  The  Secretary  of  the  Treasury  may,  from  time 
to  time,  issue  regulations  for  carrying  out  all  the  details 
involved  in  the  provisions  of  this  act,  which  shall  be  oblig- 
atory upon  all  parties  concerned  therein. 

Approved  April  21,  1862. 


Hollinger  Corp. 
pH8.5 


